Pro Trader: Time For Cisco CEO John Chambers to Resign?

With its stock trading sideways and having reported yet another disappointing quarter, Veracruz founder Steve Cortes on Thursday said Cisco Systems needs a change in leadership.

"This is absolutely dead money," Cortes said of Cisco's stock , adding it's been trading at roughly the same levels for more than a decade. "It begs the question, should John Chambers still be in charge of ths company?"

Cisco is "dead money" for three reasons, said Dan Niles, an analyst at Alpha One Capital Partners. Niles noted its revenue growth is deaccelerating, its margins are contracting and there's no telling when the company will hit bottom.

CNBC

With an attractive multiples and roughly $40 billion in cash, CNBC's Melissa Lee said some value investors think Cisco could solve its problems through acquisitions. Niles doesn't buy into that train of thought, though. He said its biggest rivals, those taking share from Cisco, are growing at a faster rate. If Cisco were to purchase those companies, Niles said it would make little impact, being as its growth rate would only grow to 7 from 5 percent.

"It really doesn't change because Cisco's just so huge relative to the five of those other companies," Niles said. "It doesn't really do anything for their growth rate."

Cisco has grown so large, it can't grow anymore, Niles explained. It's the same problem facing Intel and Microsoft , which are $11 billion and $16 billion per quarter companies respectively.

Cisco: The Next Microsoft?

The "Fast Money" traders and Daniel Niles of Alpha One Capital discuss the road ahead for Cisco.

Those three stocks is "where money goes to die," Jon Najarian said. The optionMONSTER.com co-founder sees no reason to own CSCO, INTC or MSFT right now.

Watch the video to see the complete conversation.

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